Simply Sold

Housing inventory in Twin Cities hit 13-year low

May 17, 2016 by admin

The Twin Cities housing supply is tight, and buyer demand continues to intensify. Housing supply levels across the Twin Cities metro hit a 13-year low in March of 2016, which is a 20% drop of available inventory from a year ago. The current housing supply is 2.5 months, meaning that if no new properties came to market, all inventory would be purchased in 2.5 months. A normal real estate market, with a balanced supply, is approximately 6 months.

This is good news for sellers if they can find a new home to purchase without fierce competition. Median sale prices for the month of March were up 5.7% from a year ago to $222,000 dollars, and sellers are getting 96.7% of their original list price.

The challenge for sellers in the current market is finding a home to replace the one they are selling, or would sell, leaving apprehension in the market, and would-be sellers sitting on the sidelines and opting not to sell.